ace company sells printers. each printer has a 2-year warranty that covers replacement of defective parts. it is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $153 each. during december, the company sold 33,000 printers. what is the company's warranty expense for the month of december? multiple choice $50,490 $27,500 $100,980 $58,000

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21-11-2022
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ace company sells printers. each printer has a 2-year warranty that covers replacement of defective parts. it is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $153 each. during december, the company sold 33,000 printers. what is the company's warranty expense for the month of december? multiple choice $50,490 $27,500 $100,980 $58,000

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ranjithgowdavt ranjithgowdavt · Answer 1 · 2022-12-03T08:01:05+01:00

The company's warranty expense for the month of December is $100,980. The correct option is c.

What is the warranty expense?

Warranty expense is an expense related to the repair, replacement, or compensation to a user for any product defects.

To put it in simple terms, a vendor or manufacturer is committed to repairing or replacing a sold product during a certain period if it breaks or does not function properly according to the terms of the warranty.

It is the cost associated with a defective product repair, replacement, or refund.

Learn more about warranty, here:

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